Christine Lagarde, president of the European Central Bank (ECB), has called on lawmakers to approve a regulatory framework for cryptocurrencies, hinting at the possibility of preventing Russia from circumventing economic sanctions imposed in the wake of the invasion of Ukraine.
Speaking to the media during an informal meeting of economy and finance ministers held on Friday, Lagarde he claimed that the European Central Bank will apply “decisively and rigorously” the sanctions imposed on Russia by European legislators in response to the invasion of Ukraine. In response to a question about the possibility of Russia using cryptocurrencies to circumvent some of these measures, the ECB president urged action on an existing regulatory framework proposal for digital assets.
“Whenever there is a ban or a mechanism to boycott or ban, there are always criminal ways that will try to circumvent the restriction or ban,” Lagarde said. “It is very important that the MiCA is approved as soon as possible so that we have a regulatory framework in which crypto assets can really be addressed.”
The MiCA, or Cryptoactive Markets, proposed create “a regulatory framework for the crypto asset market that supports innovation and harnesses the potential of crypto assets in a way that preserves financial stability and protects investors.” First presented to the European Commission in September 2020 and adopted by the European Council in November 2021, the proposal was scheduled to be voted on by the European Parliament on Monday.
However, rapporteur Stefan Berge announced on Friday that he had postponed the vote for fear of misconstrued as a ban on mining cryptocurrencies that use proof-of-work consensus. At press time, there is no scheduled date for EU officials to vote on the framework.
On Thursday, the president of the United States, Joe Biden announced a series of sanctions aimed at imposing “devastating costs” on Russia due to the country’s attack on Ukraine. The president announced that the United States and its allies would impose sanctions on five large banks based in Russia, as well as several elite citizens who have “enriched themselves at the expense of the Russian state.” The economic measures did not include Russia’s exclusion from the SWIFT payment system or cryptocurrency transfers.
The situation in Ukraine continues to develop, but Russia has been reported to be shelling locations across the country, including a military airport near the capital Kiev, since Russian President Vladimir Putin announced a “special military operation” on Thursday. Members of the crypto community have offered donations to the Ukrainian military and local organizations amid the crisis.
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